Diplomats come to fore at business lobbies

Former Ambassador to Indonesia Kim Chang-beom, regarded as the strongest candidate for the role of full-time vice chairman at the Federation of Korean Industries / Korea Times file

By Park Jae-hyuk

The growing importance of business relations with foreign nations is inducing Korea's business lobby groups to give key posts to former diplomats, instead of businesspeople or former officials of the finance and industry ministries, according to industry officials, Thursday.

The Federation of Korean Industries (FKI) is reportedly pushing ahead with hiring a former foreign ministry official as its new full-time vice chairman, once Poongsan Group Chairman Ryu Jin is appointed as the business lobby's new chairman after its general meeting on Aug. 22.

Among the nation's five largest business lobbies, the FKI is the only institution giving the co-CEO seats to both a chairman and a full-time vice chairman.

Former Ambassador to Indonesia Kim Chang-beom, who has a four-decade-long career as a diplomat, is currently mentioned as the strongest candidate for the new full-time vice chairman of the FKI, although the business lobby has remained silent on this issue. Kim also studied with Ryu at Seoul National University's Department of English Language and Literature during the late 1970s.

After the 1997 Asian financial crisis, the FKI has given the seat of its full-time vice chairman mostly to former executives of privately owned enterprises, such as Samsung and LG.

The only two former government officials who assumed the role during the period were former Vice Science Minister Cho Kun-ho, who built most of his career at the finance ministry, and Kwon Tae-shin, former head of the Prime Minister's Office, who also established most of his career at the finance ministry.

The FKI's latest attempt to hire a former diplomat is interpreted as part of its efforts to become a global think tank by strengthening international relations. When Ryu was recommended as the new chairman, the federation especially emphasized his experience, knowledge and networks on the global stage.

Korea Importers Association (KOIMA) Executive Vice Chairman Kwon Ki-chang, who previously served as ambassador to Ukraine / Courtesy of KOIMA

The Korea Importers Association (KOIMA), a business lobby representing importers here, has already hired former diplomats as full-time executive vice chairmen.

It recently gave the position to former Ambassador to Ukraine Kwon Ki-chang, who has more than three decades of experience as a diplomat. His predecessor, Kim Young-sun, also served as ambassador to Indonesia and Lebanon, as well as the foreign ministry spokesman.

“Former diplomats know the protocol of serving foreign ambassadors in Korea and business delegations,” a KOIMA official said. “They can therefore enable much smoother global business cooperation.”

Under the presidency of Yoon Suk Yeol, the FKI has tried to expand its global presence and hosted major international events, amid its attempts to regain its previous stature.

In particular, the federation is in close cooperation with the Japan Business Federation to raise funds from companies to boost bilateral partnerships between the two countries.

However, this has been viewed as an obstacle to Samsung's latest move to rejoin the FKI. The conglomerate left the business lobby in 2016 after its donations to scandal-ridden cultural and sporting foundations under the Park Geun-hye administration resulted in a bribery scandal involving the impeached former president and her acquaintances.

Against this backdrop, the main opposition Democratic Party of Korea slammed the FKI's attempt to hire a former diplomat.

“It was reported that a former foreign ministry official will be appointed as the full-time vice chairman of the FKI, and this shows its intention to create the new era of corrupt relations between the government and businesses, without fundamental reform,” the party's lawmakers said in a statement, Wednesday.

Concerns remain among businesspeople that a former diplomat may not be good at delivering their opinions to the government and the public.